B. Riley Financial, Inc. (RILY) is embroiled in serious allegations of financial fraud and mismanagement, with its share price likely to drop below $10. Critics highlight the company's financial disclosures, particularly the non-disclosure of Brian Kahn as a related party and questionable transactions. These issues are exacerbated by RILY's delayed 10-K filing, following reports of the audit partner's departure, leading to a 20% drop in share prices after hours. Additionally, RILY cut its quarterly dividend from $1.00 to 50 cents, reported a 4Q adjusted EBITDA loss of $23 million, and a year-over-year loss per share increase from $2.08 to $2.32. The company has engaged Moelis & Company for strategic review. Concerns are raised about the audit's integrity, with 70% of the equity book valued at Level 3 and an inexperienced employee assigned to the RILY audit. Financial analysts and short sellers predict a dire future for RILY, including potential bankruptcy and legal actions.